India’s commercial real estate sector has reached a remarkable milestone with office leasing hitting a record 59.6 million square feet in the first nine months of 2025. Led by technology companies and supported by flexible workspace providers and financial services, this surge reflects robust demand for quality office spaces in major metros. Bengaluru leads the charge, followed closely by Mumbai and Delhi-NCR. The data signals a growing preference for future-ready office environments amid evolving corporate workspace needs.
Record Growth in Office Leasing
According to CBRE South Asia Pvt. Ltd., India’s office leasing market achieved an unprecedented leasing volume of 59.6 million sq ft from January to September 2025. This performance represents a new benchmark in the commercial real estate sector, highlighting strong tenant appetite for premium office spaces. Technology firms emerged as the largest occupiers during this period, significantly contributing to leasing demand.
Major Metro Markets Lead Absorption
Bengaluru dominated the leasing activity with 15.1 million sq ft, accounting for 25% of national absorption. Mumbai and Delhi-NCR followed with 10.6 million and 10.2 million sq ft, respectively. Collectively, these three metropolitan markets contributed approximately 61% of total office space leased, reaffirming their status as India’s commercial real estate hubs.
Sectoral Drivers and Flexible Space Growth
Global capability centres (GCCs) accounted for nearly 39% of total leasing, underscoring their importance in Indian office demand. Technology companies were followed by flexible space operators and financial services, which together represented 60% of overall demand. As established firms prefer integrated tech parks, new entrants increasingly leverage flexible workspace options to meet dynamic needs.
Supply Trends and Market Outlook
Office space supply rose by 10% year-on-year to 41 million sq ft, mainly driven by Pune, Bengaluru, and Delhi NCR. CBRE anticipates that demand for flight-to-quality, future-ready spaces will continue to compress vacancies and encourage exploration of peripheral locations. Rising interest from regions such as EMEA and APAC is also expected to broaden leasing demand in India.
The FlexInsights Take
India’s office leasing surge in 2025 reflects a strong economic rebound and evolving workspace preferences. The leadership of Bengaluru, Mumbai, and Delhi NCR highlights these cities’ sustained appeal as premier business destinations. The growing prominence of flexible office solutions alongside traditional leased spaces signals an important shift towards agility in workspace strategy. As companies prioritise quality, location, and adaptability, India’s commercial real estate market looks primed for sustained growth, providing lucrative opportunities for investors and occupiers alike.
To stay updated on commercial real estate trends and workspace insights, follow The FlexInsights.
